Australia's Foreign Investment Framework consists of:

The Foreign Acquisitions and Takeovers Act 1975

The Foreign Acquisitions and Takeovers Regulations 1989

The Foreign Acquisitions and Takeovers (Notices) Regulations 1975

Australia's Foreign Investment Policy

Australia's Foreign Investment Policy (the Policy) provides the framework for Government scrutiny of proposed foreign acquisitions of Australian businesses and real estate.

The Treasurer has the authority under the Foreign Acquisitions and Takeovers Act 1975 (the FATA) to reject proposals which would result in a foreign person acquiring control of an Australian corporation or business, or an interest in real estate, which the Treasurer has determined to be contrary to the national interest.

The FATA and the Foreign Acquisitions and Takeovers Regulations 1989 (the Regulations) have monetary thresholds below which the relevant FATA provisions do not apply. There are separate higher thresholds for acquisitions by US investors, under the terms of the US-Australia Free Trade Agreement. The FATA also provides a legal mechanism for ensuring compliance with the Policy.

The FATA provides for the notification and review of all investment proposals covered by it that could potentially raise national interest concerns.

The Foreign Investment Review Board (FIRB) reviews proposed acquisitions and provides advice to the Treasurer. The decision to reject applications, or to impose conditions on foreign investment proposals, is exercised by the Treasurer based on the Treasurer's decision as to whether the investment is contrary to the national interest.

February 2012